P1
                                                        POLICY REPORT
                                URBAN STRUCTURE

                                      Date: April 9, 1996
                                      Dept. File No.  HR


   TO:       Vancouver City Council

   FROM:     Director of Community Planning

   SUBJECT:  Dundas-Wall "Let-Go" Industrial Area -
             Land Use Review and Rezoning Referral


   RECOMMENDATIONS

        A.   THAT Council confirm the  M-1 industrial zoning and  status of
             the  lands  shown as  Area 1  in  Figure 1,  and  remove their
             "let-go" designation.

        B.   THAT the Director of Land Use and Development be instructed to
             make application to  rezone Area  2 (park) shown  in Figure  1
             from M-1 to RS-1;

             FURTHER THAT the  Director of Legal Services  be instructed to
             prepare the necessary by-law;

             AND FURTHER THAT the  application and by-law be referred  to a
             Public Hearing.

        C.   THAT the Director of Land Use and Development be instructed to
             make application to rezone Area 3, shown on Figure 1, from M-1
             to C-2;

             FURTHER THAT the Director  of Legal Services be  instructed to
             prepare the necessary by-law;

             AND  FURTHER  THAT the  application  be referred  to  a Public
             Hearing.


   GENERAL MANAGER'S COMMENTS

        The General Manager of Community Services RECOMMENDS approval of A,
        B and C.

   COUNCIL POLICY

   Truck Routes and Residential Rezoning Policy

   Council on March 23, 1982, resolved:

        That when planning to rezone areas for residential use, the City be
        wary of  potential incompatibility with truck  routes; that insofar
        as possible new or  altered residential zones be located  away from
        truck  routes; that in those cases where new or altered residential
        zones  must  be located  adjacent  to  truck routes,  environmental
        protection such as double glazing, noise berms,  setbacks, etc., be
        required.

   Industrial Land Policy

   Council on July 10, 1990, resolved:

        That  270  acres be  released from  industrial  uses, and  that the
        Director of Planning, in consultation  with the Director of Housing
        and Properties and the  City Engineer, review land use  options and
        recommend  new  zoning   schedules,  including  residential   where
        appropriate.   (Note:  The Dundas-Wall industrial area was included
        in these 270 acres.)

   Housing Opportunities Strategy

   Council on April 9, 1991, resolved:

        To identify new housing  opportunities in the city by  planning for
        housing on surplus industrial lands using existing staff.

   PURPOSE AND SUMMARY

   The  purpose of  this  report is  to recommend  land use  directions and
   rezoning  for  the Dundas-Wall  industrial  area.    The report  reviews
   current land uses and zoning, presents possible directions for rezoning,
   and describes the public consultation process.

   The  Dundas-Wall  "let-go"  industrial  area  is  located  in  northeast
   Vancouver.  This  M-1 zoned area has a mix  of industrial and commercial
   uses, and park land.

   Staff analyzed  the existing role  and land  uses, and propose  land use
   directions for three sub-areas, as  shown on Figure 1 on the  next page.
   Staff  recommend that Area 1 retain  its industrial use, with M-1 zoning
   (soon to be updated to I-2), as this area serves as a buffer between the
   Port  of  Vancouver  and  heavy  industrial  uses, and  residential  and
   commercial uses.  Area 2 is park land.  Staff
   propose  that it be rezoned to RS-1,  the zoning common to most parks in
   the City.  Staff  propose that Area 3 be  rezoned to C-2.  It  no longer
   functions  as  an  industrial area,  and  C-2  zoning  would provide  an
   opportunity for additional  housing, and commercial  services compatible
   with adjacent residential uses.

   Property owners, business tenants and  area residents were consulted and
   generally support the proposals.  If the rezoning of Area 3 is approved,
   staff  recommend that DCLs be  charged for new  construction within this
   area.  (DCLs are the subject of a separate report.)

   Figure 1.  Land Use, Zoning and Area Boundaries
   BACKGROUND

   1.   Study Area Description and Zoning

   The study area is located  in the Grandview-Woodland local area.   It is
   approximately  2 ha (4.6 ac.) in size (net  of streets and lanes); it is
   zoned M-1 and was designated as "let-go" in 1990.  The M-1 zoning allows
   for a maximum height of 30.5 m (100 ft.) and a maximum FSR of 5.0.

   The  area has a mix  of industrial, commercial,  and institutional uses,
   including food manufacturers and  wholesalers, King Edward Campus North,
   a corner mini-mall,  and park land.   There is  a new development  under
   construction,  at  the  northwest  corner  of  the  study  area  (former
   Lumberland site).  This development includes a four-storey building with
   artist  live/work studios,  a service station,  ancillary retail,  and 3
   restaurants.

   The study  area is bisected  by Powell/Dundas  Street which  is a  major
   arterial and a truck route.

   2.   Surrounding Area Description and Zoning

   To the north of  the study area are CPR rail lines, which are used 30 to
   40 times  daily and also carry hazardous  materials.  The Vancouver Port
   Corporation (VPC) owns the lands north of the rail lines.  The VPC lands
   were rezoned from  M-2 to CD-1 in  1990 on an interim  basis, to provide
   for increased City input to the  form and compatibility of proposed port
   development.

   The area to  the east and  south is zoned  RM-3A, and is  developed with
   four-storey  apartment buildings.  The CD-1 on Semlin Drive is developed
   with two-storey multiple dwellings.  Hastings Street, further south, has
   a mix of C-2C and C-2C1 zoning, and mixed commercial uses.  To the west,
   M-2 heavy industrial zoning and uses predominate.

   DISCUSSION

   1.   Land Use Directions and Zoning Recommendations

   Staff reviewed  the current land  uses and role  of the study  area, and
   concluded that it should be divided into three areas, shown on Figure 1.
   (a)  Area 1

   Area 1 serves as a buffer between the existing industrial and port uses,
   and the adjacent residential and commercial uses.

   Staff  recommend that the existing M-1 zoning be retained for this area,
   to be updated to  I-2 when that district schedule  is put in place,  and
   that the "let-go" designation be removed.

   The long  narrow portion  on  the east  side of  Semlin  from Dundas  to
   Hastings should remain industrial for the following reasons:

   - it acts as a light industrial buffer between the heavy industrial area
     to the  west, and the residential  area to the east,  thereby reducing
     land use compatibility problems; and
   - in most  cases, the  property ownerships  straddle the M-1/M-2  zoning
     boundary.

   The balance of Area 1, to the north,  is the former Lumberland site that
   is being redeveloped  under the existing  M-1/I-2 zoning.   A change  in
   zoning would make the new development non-conforming.

   (b)  Area 2

   Area 2 includes  existing Oxford  Park, Cambridge Park  and an  adjacent
   triangular parcel, as shown in  Figure 1.  Park Board recently  acquired
   the     triangular    parcel    for     park    purposes,    recognizing
   Grandview-Woodland's deficiency  in park space, and to  help address the
   increased park demand from new development in the Dundas-Wall area.

   Staff propose that Area 2  be rezoned to RS-1,  as is most park land  in
   the city.  Park Board staff agree with this proposal.

   (c)  Area 3

   Area  3   already  contains   numerous  commercial  uses.     Currently,
   approximately  35%  of  the  land  is  in  industrial  use,  52%  is  in
   non-industrial  use,  and  13% is  vacant.    Staff  believe that  mixed
   commercial  and residential use should  be encouraged in  this area, for
   the following reasons:

   - most of the area no longer functions as industrial;
   - there is  an opportunity  for small neighbourhood  commercial services
     and increased housing; and
   - mixed-use would be more compatible with adjacent residential.

   Staff have  investigated the various  mixed-use C zoning  schedules, and
   recommend C-2 as the most appropriate, because:

   - it permits the broadest range of commercial service, retail and office
     uses, alone or in combination with residential uses;
   - it  provides for  a scale  that is  compatible with  adjacent multiple
     dwellings:   maximum  building height  permitted is  12.2 m (40  ft.).
     Maximum density allowed is 3.0 total, of which the residential maximum
     is 2.5; and
   - it has a set of  residential guidelines in place to  ensure livability
     of residential units, particularly in mixed-use situations and on busy
     streets.  Other C-2 type zones have less extensive guidelines.

   Under  the recommended C-2 zoning, five existing businesses (mainly food
   processing) could become  legally non-conforming.  Under C-2, these uses
   could continue to legally exist, but could not be expanded.

   Of  the   zoning  schedules  that  provide   for  mixed-use  residential
   development,  C-2 is the most appropriate.   While it still contains the
   potential for all-office development, staff research indicates that this
   is unlikely  here.  However, staff note that the all-office potential is
   a concern in other C-2 areas of  the city.  In the future, the  creation
   of  a  variation of  the C-2  schedule may  be  desirable to  limit this
   all-office potential to certain areas of the city.  The appropriate time
   to  pursue this would be with the CityPlan Neighbourhood Visioning, when
   communities  will  have  the  opportunity  to  consider the  pattern  of
   commercial uses in their areas.

   2.   Public Input

   Staff wrote all the property owners (8) of Sub-Area 1, notifying them of
   the proposal to retain the existing M-1 zoning.  There was no response.

   With respect to Area 3, staff  met with, and surveyed the landowners (9)
   and  business tenants (12),  advising them of the  proposal to rezone to
   C-2.  Six responded--four owners in favour of the proposed rezoning, and
   two business tenants  opposed to it.  One of  the opposed tenants stated
   that the proposed change would not benefit his processing business.

   (a)  Surrounding Area

   Staff sent notices to 93 property owners and 276 residents living around
   Sub-Area 3.  The response was two telephone enquiries about the proposal
   details, and one  letter expressing  concern about the  loss of  private
   views.   Staff acknowledge this  possibility, and note  that views could
   also be lost with redevelopment under the current M-1 zoning.

   (b)  Community Groups

   Staff  notified   the  Grandview-Woodland  Area   Council,  the  Kiwassa
   Neighbourhood House,  and the  Burrardview Neighbourhood  Association of
   this  proposal.   Only the  latter group  expressed concerns,  regarding
   additional commercial uses in the area attracting prostitution and other
   criminal behaviour.  Staff met  with this group to explain  the proposed
   rezoning,  noting that the amount of commercial development likely to be
   built  in  a C-2  zone  (ground  floor only)  is  no  greater than  that
   permitted  in  the  current M-1  zone.    Since  development would  have
   strata-title residential  above, marketing  considerations make  it less
   likely that 24-hour or  late night businesses would be  located at grade
   in  C-2 developments.   In  addition, the  residential uses will  add an
   element of 24-hour surveillance which the area currently lacks.

   3.   Development Cost Levies

   If Council  approves the  rezoning of  Area 3 at  Public Hearing,  staff
   recommend  that  Development  Cost  Levies  (DCLs) be  charged  for  new
   construction  within this  area.   DCLs are  the subject  of a  separate
   report to Council.

   SOCIAL IMPLICATIONS

   There  are  no major  positive or  negative  social implications  to the
   proposed  rezoning.   There  are no  implications  with respect  to  the
   Vancouver Children's Policy or Statement of Children's Entitlements.

   ENVIRONMENTAL IMPLICATIONS

   The  proposed rezoning  will  provide opportunities  for higher  density
   housing, close to transit and work places.  This may help reduce traffic
   demands, with consequent benefits to air quality.

   CONCLUSION

   Area 1 acts as a light industrial buffer to the heavy industrial area to
   the west, and the Port to the north.  Staff recommend that it retain its
   M-1 industrial zoning.  Area 2 is park land.  Staff recommend that it be
   rezoned to the RS-1 zoning common to most parks in the city.  Area 3 has
   evolved from an industrial  area to an area  which is now  predominantly
   commercial  in use.  A  City-initiated rezoning to  C-2, as recommended,
   offers  an  opportunity  to  allow  for  additional  housing,  and  some
   neighbourhood commercial with guidelines to provide for livability.

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